Short answer
Landlords and sole traders whose qualifying income was over £50,000 must use Making Tax Digital for Income Tax from 6 April 2026. The threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. Qualifying income is your total income from property and self-employment before expenses, including your share of jointly owned property. You keep digital records and send quarterly updates through HMRC-recognised software.
Figures checked against GOV.UK and HMRC guidance.
Who has to use Making Tax Digital for Income Tax, and when?
| Qualifying income over | Must use MTD from | Based on your return for |
|---|---|---|
| £50,000 | 6 April 2026 | 2024/25 |
| £30,000 | 6 April 2027 | 2025/26 |
| £20,000 | 6 April 2028 | 2026/27 |
Source: GOV.UK: find out if and when you need to use MTD for Income Tax. HMRC uses the return you filed for the year shown to decide whether you are in.
What counts as qualifying income for MTD?
Qualifying income is turnover, not profit: your rent and self-employed sales before any expenses. It includes your share of jointly owned property and, if you are UK resident, foreign property income. It excludes salary, pensions, dividends and partnership profit shares. GOV.UK: work out your qualifying income
Example
A landlord’s 2024/25 tax return shows £38,000 of rent and £14,000 of sales from part-time self-employment. That qualifying income of £52,000 puts them in MTD from 6 April 2026, even though their combined profit after mortgage interest and costs might be much lower.
When are MTD quarterly updates due?
For the 2026/27 tax year, quarterly updates are due by 7 August, 7 November, 7 February and 7 May. The first was due by 7 August 2026. After the year ends you confirm the figures and add any other income in a final declaration, due by 31 January. HMRC
What we do
- Check whether, and from when, you are required to join
- Sign you up and authorise us as your agent
- Set up HMRC-recognised software (we work in Xero) and bank feeds where available
- Keep digital records for each property, or review the records you keep
- Prepare and submit each quarterly update
- Prepare and submit the final declaration
Fees
Making Tax Digital support is quoted as a fixed fee. We price it per year, covering the four quarterly updates and the final declaration, and it depends on how many income sources you report. How our fees work.
Frequently asked questions
Do I need MTD if my rental profit is low?
Possibly. The test uses income before expenses, so a landlord with high rent and high mortgage costs can be in MTD while making little profit.
Does MTD apply to my limited company?
No. MTD for Income Tax applies to individuals. Property companies pay Corporation Tax, which is not part of MTD for Income Tax.
What if I am not able to use digital tools?
HMRC can grant an exemption to people who are digitally excluded, for example because of age, disability or location. You apply to HMRC; it is not automatic.
Official sources
- Find out if and when you need to use Making Tax Digital for Income Tax GOV.UK
- Work out your qualifying income for Making Tax Digital for Income Tax GOV.UK
- Deadline approaches for first Making Tax Digital quarterly update HMRC press release
Figures were checked against these sources on . Tax rules change: check the source or ask us before acting.